Benchmark reiterates Buy rating on Warner Bros Discovery stock after Superman success

Published 14/07/2025, 12:44
Benchmark reiterates Buy rating on Warner Bros Discovery stock after Superman success

Investing.com - Benchmark has reiterated its Buy rating and $18.00 price target on Warner Bros Discovery (NASDAQ:WBD), following the successful opening weekend of the new Superman movie. The entertainment giant, currently valued at $29 billion, has seen its stock surge over 58% in the past year, according to InvestingPro data.

The Superman film registered a $122 million North American box office and $217 million globally during its opening weekend. The movie, which stars David Corenswet, had a production cost of $225 million.

Benchmark added Warner Bros Discovery to its Best Ideas List on June 30. The firm notes that the favorable reception for Superman supports the outlook for upcoming DC Studios projects, including 2026’s Supergirl and Clayface, more Batman releases, a new Wonder Woman in development, and a Green Lantern TV show for HBO Max.

The Superman success follows Warner Bros’ earlier 2025 achievement with A Minecraft Movie, which has reached $955 million globally, including $554 million from overseas markets.

Benchmark indicates that while Superman’s performance may not drive an immediate major stock price move, it eliminates the risk of a superhero disappointment similar to recent DC Studios films under prior management, which included The Flash, Aquaman and the Lost Kingdom (TADAWUL:4280), Shazam: Fury of the Gods, and Blue Beetle.

In other recent news, Warner Bros. Discovery has announced pricing terms for its debt tender offers through its subsidiaries, involving the purchase of outstanding notes and debentures. The company plans to settle all accepted notes by June 30, 2025, with J.P. Morgan Securities and Evercore Group managing the offers. In parallel, Warner Bros. Discovery has signed new employment agreements with CEO David Zaslav and CFO Gunnar Wiedenfels to ensure leadership continuity amid its strategic reorganization. This move aligns with the company’s preparation to separate its Streaming & Studios division from its Global Networks division.

UBS has raised its price target for Warner Bros. Discovery to $10.00, maintaining a Neutral rating, and forecasts the company’s second-quarter revenues at $9.86 billion, with an EBITDA of $1.91 billion. Bernstein has reiterated a Market Perform rating with an $11.00 price target, noting that the company’s bond tender is nearing completion, a key step toward its planned separation. Meanwhile, Benchmark has added Warner Bros. Discovery to its Best Ideas List, maintaining a Buy rating and highlighting upcoming projects like the Superman reimagination, expected to generate significant box office revenue.

These developments underscore Warner Bros. Discovery’s strategic initiatives and financial adjustments as it navigates industry challenges and prepares for its business split.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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